Ohio Assessments for Educators (OAE) Mathematics Practice Exam

In terms of correlation, what does a correlation coefficient value close to 1 indicate?

1. Strong negative relationship

2. No relationship

3. Strong positive relationship

4. Weak positive relationship

The correct answer is: Strong positive relationship

A correlation coefficient value close to 1 indicates a strong positive relationship between two variables. This means that as one variable increases, the other variable tends to also increase in a consistent and predictable manner. A value of 1 signifies a perfect positive correlation, where every increase in the first variable corresponds directly and proportionally to an increase in the second variable. In practical terms, when analyzing data, a high positive correlation suggests that the variables are strongly linked, making this information valuable for predictions and understanding the dynamics between the variables. Conversely, a correlation coefficient close to 0 would imply little to no relationship, while a value close to -1 would indicate a strong negative relationship, where one variable increases as the other decreases. Thus, a value near 1 distinctly highlights the strong positive nature of the connection between the variables.